MGM's acquisition by Entertainer becomes more challenging due to Entertainer's recent acquisition spree.
In the world of international gambling, the ongoing saga between MGM Resorts and Entain has been a topic of interest. The two companies, already jointly owning 50% of BetMGM, have been at the centre of a series of acquisition attempts by MGM Resorts, which have so far been unsuccessful.
MGM Resorts, with its intentions to bring its iGaming operations in-house, made a significant offer of over £8 billion in 2021 to fully acquire Entain. However, this offer was not accepted by Entain, and no counter-offer was forthcoming from MGM Resorts.
The reason for Entain's rejection lies in its recent growth and acquisitions. In the past eight months alone, Entain has made acquisitions amounting to over a billion dollars, a fact that potential suitors, including MGM Resorts, find challenging. This rapid expansion has made Entain a formidable entity, potentially lessening MGM Resorts' chances of success in future purchase attempts.
Entain's growth has not gone unnoticed. Its shares have been steadily growing, with investors expressing satisfaction due to the company's recent acquisitions. The value of Entain's shares has reflected this growth, steadily increasing in value.
MGM Resorts is not the only potential suitor for Entain. The hotel company has shown interest in acquiring Entain, but the negotiations fell through due to the lack of a counter-offer. This has not deterred MGM Resorts, as they continue to be one of the prospective owners of Entain, albeit unsuccessfully so far.
Despite the failed acquisition attempts, both companies continue to reap the benefits of their joint venture, BetMGM. The future of this partnership remains uncertain, but one thing is clear: Entain's recent growth and acquisitions have made it a formidable player in the iGaming industry, potentially making future purchase attempts more challenging for MGM Resorts.
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